Music Corner World

There is one index more than any other which determines the wellness of an economic system and it is the Real Rate of Return. Furthermore this is the simplest of all indexes to understand because it determines the safety of assets. Next clip you hear the talk heads discussing the niceties of the markets, filter what they state through your ain apprehension of the Real Rate of Return.

The Real Rate of Tax Tax Return is the 1 number that determines the safety of principal. It is calculated by taking the current chemical bond output and subtracting the expected inflation rate from it. The consequence is the real number tax return on giaranteed money from the government.

Interest Rates are on the rise as we have got been expecting and
this pressure level level have set a enormous amount of pressure on the
stock market. The indispensable simplicity at work here is very,
very basic. If Interest rates on Bonds are yielding 5.14% and
rising prices is forecasted at 5%. The difference is the real number RATE
of RETURN, (in this case we are speaking about .14%). The
real number RATE of tax return is what trips major mass meetings and diminutions on
Wall Street.

The ground for this is that the Chemical Bond market is the largest
financial market in the world. There are literally millions of
dollars invested in debt denominated assets. These investors
are primarily interested in the security of their principal and
taking as minimum hazard as possible. They historically have got been
thrilled with real number RATES of tax returns that would be in the 2% - 5%
annually. During the 1970's this index went negative for a
piece indicating inflation was rising faster than interest rates
and chemical bond investors actually had significant negative returns. During this clip there was much "screaming and gnashing of
teeth."

It have always been my estimate that Federal Soldier Modesty Chairman,
Alan Greenspan's cardinal undertaking is to maintain the real number RATE of tax return as
high as possible. HE have been extremely successful at doing
this. If you read back over any history of the financial markets you would be wise to see events through this indicator. The economical clime goes remarkably different and people's sentiments change dramatically when the real number RATE of tax return on the most SECURE investings is threatened.

A thorough apprehension of this simplicity is necessary for
success in any sort of investment as IT is the basic building
block from which all other analysis is based. Although it is
always hard to calculate what will go on in the future, the
1 factor you can number on is that when THE real number RATE OF RETURN
is falling there is much perspiration on the foreheads of Money Managers
who supervise the millions of dollars entrusted to them.

At this point support YOUR eyes on this index and do your own
prognosis of INFLATION. You'll recognize that your analysis can be
better than the Big Boys.

Let's be careful other there!

Dowjonesfully,
-Harald Anderson
http://www.eOptionsTrader.com.